Today as part of Gazprom delegation’s business trip to Salekhard, Alexey Miller, Chairman of the Company’s Management Committee and Nikolai Vinnichenko, Plenipotentiary Representative of the Russian President in the Urals Federal Okrug (Urals FO) signed a Memorandum of Cooperation.

According to the Memorandum provisions, the parties will support execution of the Russian Energy Strategy until 2030 in the Urals FO.

The Memorandum defines that the parties shall cooperate in such paramount areas as:

- securing the reliable natural gas supplies to the Urals FO regions including the consumers of the Urals Industrial – Urals Polar project, as well as observing the gas consumption discipline;

- well-balanced development of gas distribution and consumption facilities including the facilities of the Russian Unified Gas Supply System, population centers gasification, elaboration and adoption of gas saving technologies and equipment;

- maintenance of the required volume of back-up fuels and expanded utilization of alternative fuels;

- gas exploration, development and production at small fields and shaping a transportation infrastructure within the Urals Industrial – Urals Polar project;

- creating favorable financial and investment conditions to facilitate efficient operation of the Urals FO fuel and energy complex.

The parties have agreed to promote searching for the unified principles and approaches to the common gasification program for the Urals FO based on the gas saving concept and with due regard to gasification programs for the Urals FO constituents.

In order to fortify the energy base and to streamline the fuel balances in the Urals FO constituents, the parties have agreed to encourage the working-out and execution of economically viable programs and projects. They embrace the following areas:

- construction and development of novel power generation facilities including distributed power generation;

- wider utilization of compressed and liquefied natural gas as motor fuel for vehicles, rail transport and agricultural equipment;

- advanced processing and more effective utilization of natural gas in power generation, chemical, metallurgical and other gas consuming industries;

- energy saving and improved fuel utilization, involvement of alternative fuels into the fuel and energy balance including the non-conventional ones;

- improving the environmental situation in the Urals FO.

Background:

The Urals Federal Okrug comprises six Russian Federation constituents: the Kurgan, Sverdlov, Tyumen and Chelyabinsk Oblasts, the Khanty-Mansiysk Autonomous Okrug – Yugra (KhMAO) and the Yamal-Nenets Autonomous Okrug (YaNAO).

Gazprom has signed Agreements of Cooperation with all the Urals FO constituents, a Memorandum of Cooperation with the YaNAO and Accords on Gasification with the Kurgan Oblast, the Yamal-Nenets Autonomous Okrug and the Khanty-Mansiysk Autonomous Okrug.

The average gasification level in the Urals FO regions accounts for 50.6 per cent including 57.1 per cent in cities and towns and 24.6 per cent in the rural area. The identical figures throughout Russia make up 62, 67 and 44 per cent accordingly.

The Chelyabinsk and Sverdlov Oblasts feature Russia’s highest gasification levels (58.9 and 56.2 per cent), while the Kurgan Oblast features the lowest one (28.4 per cent).

Between 2002 and 2008 Gazprom invested over RUB 4.1 billion in the Urals FO gasification and RUB 775 million are slated for the same purpose in 2009.